Donald Trump on Trade

OPENING CASE current American trade negotiators as “stupid people,”

“political hacks and diplomats,” and “saps” and suggested
On November 8, 2016, Donald Trump was elected the that he should become “negotiator in chief.”
President of the United States. In contrast to all U.S. presi- In direct contrast to Donald Trump’s espoused position,
dents since World War II, Donald Trump has voiced strong the pro trade policies of the last 70 years were based
opposition to trade deals designed to lower tariff barriers upon a substantial body of economic theory and evidence
and foster the free flow of goods and services between that suggests free trade has a positive impact on the eco-
the United States and its trading partners. He has called nomic growth rate of all nations that participate in a free
the North American Free Trade Agreement (NAFTA) “the trade system. According to this work, free trade doesn’t
worst trade deal maybe ever signed anywhere.” He vowed destroy jobs; it creates jobs and raises national income. To
to “kill” the Trans Pacific Partnership (TPP), a free trade deal be sure, some sectors will lose jobs when a nation moves
among 12 Pacific Rim countries, including the United States to a free trade regime, but the argument is that jobs cre-
(but excluding China), negotiated by the Obama adminis- ated elsewhere in the economy will more than compen-
tration. In his first week in office, he signed an executive sate for such losses, and in aggregate, the nation will be
order formally withdrawing the United States from the TPP. better off.
Trump has also floated various ideas for imposing higher The United States has long been the world’s largest
tariffs on imports and punitive taxes on American compa- economy, largest foreign investor, and one of the three
nies that move production out of the country. At one point, largest exporters. As a result of America’s economic power,
he threatened to impose a 45 percent tariff on imports of Americans’ long adherence to free trade policies has
goods from China. His transition team was reportedly con- helped to set the tone for the world trading system. In large
sidering imposing a 5 percent general tariff on all imports part, the post–World War II international trading system,
into the United States. He has even threatened to pull the with its emphasis on lowering barriers to international trade
United States out of the World Trade Organization (WTO) if and investment, was only possible because of vigorous
the global trade body interferes with his plans to impose American leadership. Now with the ascendancy of Donald
penalties on companies that move American production Trump to the presidency, that may change. Pro–free traders
offshore. argue that if Trump does indeed push for more protection-
Trump’s position seems to be based on a belief that ist trade policies—and his rhetoric and cabinet picks sug-
trade is a game that America needs to win. He appears to gest he will—the unintended consequences could include
equate winning with running a trade surplus. He sees the retaliation from America’s trading partners, a trade war
persistent U.S. trade deficit as a sign of American weak- characterized by higher tariffs, a decline in the volume of
ness. In his words, “you only have to look at our trade defi- world trade, substantial job losses in the United States, and
cit to see that we are being taken to the cleaners by our lower economic growth around the world. As evidence,
trading partners.”* He believes that other countries have they point to the last time such protectionist policies were
taken advantage of the United States in trade deals, and implemented. That was in the early 1930s, when a trade
the result has been a sharp decline in manufacturing jobs war between nations deepened the Great Depression.
in the United States. China and Mexico have been fre-
quent targets of his criticisms. He has argued that China’s Sources: “Donald Trump on Free Trade,” On the Issues, http://www.
trade surplus with the United States is a result of that coun- ontheissues.org/2016/Donald_Trump_Free_Trade.htm; Keith
try’s currency manipulation, which has made Chinese ex- ­Bradsher, “Trump’s Pick on Trade Could Put China in a Difficult Spot,”
ports artificially cheap. He seems to think that America can The New York Times, January 13, 2017; William Mauldin, “Trump
Threatens to Pull U.S. Out of World Trade Organization,” The Wall
win at the trade game by becoming a tougher negotiator Street Journal, July 24, 2016; “Trump’s Antitrade Warriors,” The
and extracting favorable terms from foreign nations that Wall Street Journal, January 16, 2017; “Donald Trump’s Trade Bluster,”
want access to the U.S. market. He has even characterized The Economist, December 10, 2016.

* Source: “Donald Trump on Free Trade”, On The Issues, http://www.ontheissues.org/2016/Donald_Trump_Free_Trade.htm.

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FORBES SMALL BUSINESS

The Value Of Global Companies

With A Local Mindset

Gilda D'Incerti Forbes Councils Member

Forbes Business Council COUNCIL POST | Membership (Fee-Based)

Feb 10, 2023, 09:15am EST

Gilda is the founder and CEO of technology solutions and compliance

consulting services company PQE Group.

GETTY

Throughout my life, one of the most essential elements of education,

enjoyment or innovation I have experienced has come from travel.
Immersing myself in various cultures, perspectives and ideas helped my
thought processes evolve and made me aware of the priceless value of
diversity. As the CEO and founder of PQE Group, a rapidly growing
international organization surrounding life sciences, I recognize that our
success has primarily stemmed from our company prioritizing diversity,
equity and inclusion.
Oxford Reference refers to glocalization as the "integration between the
local and global" and the "connectedness produced by travel, business
and communications." When expanding your company to new localities,
it's crucial to understand and respect the culture. One of the most
effective ways to do this is to establish an office in the region, preferably
with resident workers who can then teach the team about cultural do's
and don'ts as well as how to integrate seamlessly into the community.
Understanding the nuances of a new place can help locals feel more
comfortable engaging with your foreign enterprise while allowing your
company to grow deep roots and foster valuable, long-lasting
connections.

By assimilating the best parts of each culture in your company, you can
create an atmosphere that welcomes and generates innovation by using
the varying mindsets and ideas of team members worldwide. However,
this sometimes can be easier said than done. Leaders of multinational
companies need to have a deep understanding of cultural differences; an
article published by Chron notes that not having this deep understanding
can "contribute to poor personnel decisions, ineffective marketing and
safety issues." There are many moving parts when it comes to
establishing offices overseas, and analyzing and prioritizing cultural
values can help unite employees across regions in a common mission
despite being from different backgrounds and walks of life.

According to research by Deloitte, "94% of executives and 88% of

employees believe a distinct workplace culture is important to business
success." This goes to show that regardless of where you have established
your businesses (whether on your home front or abroad), it's vital to
have a strong, unified company culture where employees feel valued.
Once you have a healthy and established work atmosphere that allows
people to collaborate freely and safely be themselves, it should translate
to your global office environments and how they operate in the cities and
nations where they are located.

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A crucial aspect of successfully going glocal is recognizing how countries
respond to various social concepts, business strategies and overall life
methodology. For example, individualist cultures stress independence,
while collectivist cultures emphasize the common good. In order to reach
a medium of understanding and attract residents to your products and
services, leaders must evaluate, adapt and cater procedures to meet the
needs of each place. However, a natural way to do this is by already
assembling a global team where you have individuals with firsthand
experiences in cultures across the world who can best explain and help
you empathize with specific regions and people.

There are endless possibilities when it comes to an open market

economy, and success can be at your fingertips if your enterprise can
strike a balance between honoring all cultures while maintaining the
trajectory toward a common goal. One way this can be accomplished—
even remotely—is through technology and the encouragement of social
interaction and human connection. By making face-to-face time a
priority and holding virtual or in-person huddles, you can ensure that
team values are shared as well as engage employees in decision making
and deeper conversations.

To run a successful and sustainable global business, you must truly

embrace the concept of a melting pot. Your team needs to be composed
of open-minded and diverse individuals who are passionate about others
and have a solid mind and mission toward bettering communities with
your enterprise. Growing into different lifestyles and cultures can help
cultivate a more connective and transformational world, and the success
of any organization is tied to the well-being of the community and the
environment in which they belong and operate. Appreciating and
understanding different cultures is a unique form of freedom that can
hand you the keys to making a positive change in the world.

Forbes Business Council is the foremost growth and networking

organization for business owners and leaders. Do I qualify?

Follow me on LinkedIn. Check out my website.